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Monday: 12th February 2018 - The Australian share market looks set to Ignore Wall Street's positivity and to open half a percent lower.

OPENING CALL: The Australian share market looks set to Ignore Wall Street’s positivity and to open half a percent lower. At 0700 AEDT on Monday, the share price futures index was down 28 points, or 0.49 percent, at 5724

U.S. stocks ended a wild week with gains but suffered their steepest weekly losses in

more than two years, with major indexes dropping more than 5% and investors bracing for

more volatility ahead.

Friday’s session was again marked by heightened volatility with the Dow swinging 1,022

points from its high to its low, before surging in the final minutes of the trading

session to end the day up 330 points, or 1.4%, to 24191. After spending much of the

afternoon in the red, stocks turned higher after the S&P 500 approached a key technical

Though major indexes bounced back Tuesday, they couldn’t hold on to gains later in the

week, and on Thursday the Dow and S&P 500 slid into correction territory , marking 10%

falls from their Jan. 26 highs.

“It feels like I’ve been shelled all week by artillery,” said Michael Antonelli, equity

sales trader at Baird. On his trading floor in Milwaukee, Wis., he said stress levels

among traders are higher, few traders are able to get up to go to the bathroom, let alone

grab lunch, because of the stock-market volatility.

The Dow Jones Industrial Average fell more than 700 points intraday as worries about rising interest rates again rattled markets.
A shaky day in the bond market appeared to spook equity investors, as the Dow industrials recently dropped 600 points, or 2.4%, to 24293. Earlier in the session, the
Dow fell as much as 704 points. The yield on the benchmark 10-year U.S. Treasury note was at 2.848%, near its highest level since January 2014, from 2.843% on Wednesday, according
to Tradeweb.
Fears that a pickup in growth and inflation could force central banks to tighten monetary policy more quickly than expected have driven government-bond yields higher
throughout the year. That, in turn, can pressure stock prices as fixed-income interest payments become more attractive than stock dividends.
Similar concerns sparked the tumble in stocks last week when data showed wage growth accelerating at the fastest rate since 2009 — a sign that long dormant inflation could
be picking up, analysts said. Since then, stocks have taken a wild ride, giving up January’s big gains and flirting with correction territory.

European shares extended their losses Friday as an upbeat start on Wall Street fizzled

out.

France’s CAC-40 fell 1.4% and Germany’s DAX was off 1.2%, while all the

region’s other major indices were in the red.

European stocks dropped, taking their cues from a selloff on Wall Street as well as a plunge in oil prices that weighed on shares of the region’s major energy companies.
The Stoxx Europe 600 index fell 1.6% to close at 374.03, partly erasing a 2% rally from Wednesday, when the benchmark broke a string of seven straight declines. The pan-European
index is now on track for a 3.6% weekly slump, which would be its worst since February 2016.
Germany’s DAX 30 index slumped 2.6% to 12,260.29, and France’s CAC 40 index fell 2% to 5,151.68. The U.K.’s FTSE 100 ended down 1.5% to 7,170.69.
European stocks had opened in negative territory, but losses deepened in the afternoon when Wall Street opened with steep losses as volatility returned to grip the market.
Concerns over rising inflation and rising bond yields have weighed on traders’ minds this week.

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